The world’s largest free trade agreement, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), comes into effect today. (September 21, 2017)
CETA will result in new opportunities for Newfoundland and Labrador businesses as well as other Canadians, who will benefit from the immediate elimination of 98 percent of all tariffs on Canadian goods as well as a further one percent reduction over the next seven years.
CETA will provide Canadian companies with a first mover advantage over competitors from markets including the United States that do not have a trade agreement in place with the European Union.
The agreement will allow Canadian companies to establish customer relationships, networks, and joint projects first.
Overall, the elimination of tariffs will make Canadian products more competitive in the European Union, giving Canadian exporters a significant advantage over other exporters still facing tariffs. This will allow Canadian companies to expand or create new markets for their goods in the European Union.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will create jobs, strengthen economic relations and boost Canada’s trade with the world’s second-largest market. CETA is a progressive free trade agreement which covers virtually all sectors and aspects of Canada-EU trade in order to eliminate or reduce barriers. For example, prior to CETA’s entry into force, only 25 percent of EU tariff lines on Canadian goods were duty-free. Upon CETA’s entry into force, the EU will remove tariffs on 98 percent of its tariff lines. Once CETA is fully implemented, the EU will have eliminated tariffs on 99 percent of its tariff lines.
Examples of some of the benefits of CETA include:
· Elimination of tariffs on fish and seafood production, providing unprecedented access to the world’s most lucrative fish and seafood market;
· Elimination of tariffs on metal and mineral products creating new opportunities to export Newfoundland and Labrador’s considerable natural resources; and
· Tariff relief for manufacturers, as well as for businesses that provide forestry and wood products.
In the coming weeks, the Provincial Government will lead a series of information sessions to highlight the opportunities for local businesses to expand their reach into the European Union.
“Newfoundland and Labrador’s business community relies heavily on trade and greater access to the European Union will create exciting possibilities for economic growth. Our government is a partner of business and we are fully committed to working with local companies to help them capitalize on new opportunities and support job creation” said the Honourable Dwight Ball, Premier of Newfoundland and Labrador.
Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry, and Innovation said, “With the implementation of CETA today, our province is able to take advantage of the opportunities that this trade agreement brings, including significant reductions in tariffs on exports. The EU is Canada’s second-largest trade and investment partner and for important Newfoundland and Labrador sectors including fish, agriculture, and forestry, CETA offers significant new opportunities for growth and to move towards more value-added production. Our department is eager to work with businesses in our province to take advantage of these opportunities.”
Did you enjoy this article?
We respect your privacy and will never share your information with third parties.